January 4, 2013 11:43 am
Am an IT employee. My company offers an amount of Rs 500 as gratuity. Is it taxable if am leaves the company within a year or before completing 5 year with same company.
My understanding is if you have not completed 5 years of service you wont be paid gratuity So where is the question of tax? Forgot about this earlier.
Dear Madhusmita, As you are not completing the 10y service period, the amount ‘ll be taxable within the over all income.
Amount less than 10 lakhs is exempt from tax which is the most likely case for you (the entire rule is quite long but for most people the 10 lakh limit will be applicable.
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